Papa John's International announced financial results for the first quarter ended March 31, including a systemwide comp sales increase of 1.6 percent for North America, and 8.2 percent for its international business.
The chain opened 34 worldwide net units during Q1. Earnings per diluted share were up 6.3 percent.
"We are pleased to maintain our momentum in the first quarter, with solid increases in EPS, global comp sales, and unit builds," said John Schnatter, Papa John's founder, chairman and CEO. "We are excited about both the health of the pizza category and the strength of the Papa John's brand as we continue to grow around the world."
First quarter 2013 revenues were $355.6 million, a 7.3 percent increase from first quarter 2012 revenues of $331.3 million. First quarter 2013 net income was $19.3 million, compared to first quarter 2012 net income of $17.0 million ($19.1 million and $19.4 million, for the first quarter of 2013 and 2012, respectively.
The increase in revenues for Q1 was primarily due to the following:
- Domestic company-owned restaurant sales increased $14.1 million, or 9.8 percent, primarily due to an increase of 3.9 percent in comparable sales during the Q1 and the net acquisition of 50 restaurants in the Denver and Minneapolis markets from a franchisee in Q2 of 2012.
- North America franchise royalty revenue increased $215,000, or 1.0 percent, as the increase in net franchise units over the prior year and positive comparable sales of 0.8 percent were substantially offset by reduced royalties attributable to the company's net acquisition of the 50 restaurants noted above.
- Domestic commissary sales increased $6.3 million, or 4.6 percent, due to an increase in the volume of sales as well as increases in the prices of certain commodities.
- International revenues increased $3.1 million, or 18.2 percent, primarily due to an increase in the number of restaurants and an increase in comparable sales of 8.2 percent, calculated on a constant dollar basis.
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